Exam 10: Measuring a Nations Income: Is GDP a Good Measure of Economic Well-Being

During a presidential campaign,the incumbent argues that he should be reelected because nominal GDP grew by 12 percent during his 4-year term in office.You know that population grew by 4 percent over the period and that the GDP deflator increased by 6 percent during the past 4 years.You should conclude that real GDP per person

The underground economy

GDP is not a perfect measure of well-being;for example,

The information below for 2008 in millions was reported by the World Bank.On the basis of this information,which list below contains the correct ordering of GDP per person from highest to lowest?

GDP per person tells us the income and expenditure of the

Suppose the government eliminates all environmental regulations and,as a result,the production of goods and services increases,but there is considerably more pollution.Based on this scenario,which of the following statements is correct?

GDP does not reflect

Which of the following statements regarding GDP is correct?

On the basis of the information presented in the table below,which presents the correct ordering of real GDP per person from highest to lowest?

Many things that society values,such as good health,high-quality education,enjoyable recreation opportunities,and desirable moral attributes of the population,are not measured as part of GDP.It follows that

GDP is used as the basic measure of a society's economic well-being.A better measure of the economic well-being of individuals in society is

The information for 2008 in millions in the table below was reported by the World Bank.On the basis of this information,which list below contains the correct ordering of real GDP per person from highest to lowest?

Which of the following is a true statement?

GDP is not a perfect measure of well-being;for example,

Last year country A had a nominal GDP of $600 billion,a GDP deflator of 150 and a population of 40 million.Country B had a nominal GDP of $720 billion,a GDP deflator of 120 and a population of 50 million.From these numbers which country is likely to have had the higher standard of living?

Suppose that over the last twenty-five years a country's nominal GDP grew to three times its former size.In the meantime,population grew by 40 percent and prices rose by 100 percent.What happened to real GDP per person?

Underground economic activity as a percentage of GDP was highest in

The information below for 2008 in millions was reported by the World Bank.On the basis of this information,which list below contains the correct ordering of GDP per person from highest to lowest?

Suppose the government passes a law eliminating holidays and,as a result,the production of goods and services increases because people work more days per year (and thus enjoy less leisure per year).Based on this scenario,which of the following statements is correct?

International data on GDP and socioeconomic variables